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New World Development

New World Development Co (HK stock code 0017) is a Hong Kong conglomerate with operations in property, infrastructure, transport, retailing telecommunications and bus and ferry operations.It is controlled by Chow Tai Food, a holding company owned by businessman Cheng Yu-tung.

New World Development, the city's fifth-largest developer by market value, yesterday announced it would make an HK$18.6 billion rights issue to take its mainland property arm New World China Land private.

New World Development's first-half net profit plunged 54.6 per cent, but the company said it would take measures to offset the negative impact of the cooling measures in the property market which might affect earnings.

New World Development and Wheelock Properties said it would put an additional 70 units on the market at their joint residential development at the Austin MTR station and raise the asking price by 5.6 per cent.

New World Development took the plunge at the weekend and discounted prices at its Park Signature project in Yuen Long - attracting the strongest buying response since the Residential Properties (First-hand Sales) Ordinance took effect on April 29.

Aided by an aggressive pricing strategy, New World Development sold 82 per cent of the 238 flats that were on offer at Park Signature in Yuen Long. The flats put on sale were a fraction of the 1,620 in the development.

New World Development's latest residential project in Yuen Long will test buying sentiment in the mid-range market in the New Territories amid subdued demand as a result of the government's cooling measures.

New World Development and its controlling shareholder, Chow Tai Fook Enterprises, have agreed to guarantee a minimum HK$707 million first-year payout from the proposed spin-off of the group's hotel subsidiary.

The flats at The Reach were offered at HK$10,086 per square foot of saleable area, meaning the firms are asking from HK$3.55 million to HK$8.19 million per flat, as their saleable area ranges from 355 sq ft to 659 sq ft.

When Hong Kong property developers get a good idea, they tend to all converge on it at once. The idea that has captivated them right now is the hotel trust listing. There are three on the cards, including one from Great Eagle launched this week.